Return on Investment

Return on Investment (ROI) is a measure used to evaluate the efficiency and profitability of an investment. It compares the gain or loss from an investment relative to its initial cost, expressed as a percentage. For example, if you invest $1,000 and make $200 profit, your ROI is 20%. A higher ROI indicates a more profitable investment. It helps individuals and businesses assess whether an investment is worthwhile and compare different options to make informed financial decisions efficiently.